portfolio? Question 3. A. B. Question 4. 15% and 8%. JKL stock is quite cyclical. In a boom, the stock is expected to re

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Portfolio Question 3 A B Question 4 15 And 8 Jkl Stock Is Quite Cyclical In A Boom The Stock Is Expected To Re 1 (19.61 KiB) Viewed 12 times

portfolio? Question 3. A. B. Question 4. 15% and 8%. JKL stock is quite cyclical. In a boom, the stock is expected to return 35% in comparison to 15% in normal time and negative 18% in a recession. The probability of recession is 20%. There is a 18% chance of a boom. What is the standard deviation of the returns of this stock? A stock had returns of 10%, 8%, 15%, -2% annually for the past 4 years. What is the mean and standard deviation of these returns? Stock A has the following historical returns: 16% -10%, 14% and 10%; while stock B's historical returns are: -5%, 10%, a Calculate the average return of Stock A, B. b. Calculate the standard deviation of each stock C. Which stock do you prefer? d. Calculate the correlation coefficient. C. Interpret the meaning of that correlation coefficient. Question 5